August 16, 2007

Yesterday, the Postal Regulatory Commission (PRC) published proposed regulations to implement a modern ratemaking and classification system for market dominant and competitive mail products. Comments to the proposed regulations are due by September 14, 2007, and reply comments are due by September 28, 2007. The proposed regulations are available at prc.gov, and will be published in the Federal Register.

The proposed rulemaking consists of three parts: regulations related to competitive products; regulations related to rate adjustments for market dominant products, including the formula for calculation of the rate cap under which annual adjustments may be made; and establishment of a Mail Classification Schedule, which categorizes products as either market dominant or competitive.